Determinants of Enterprise Resource Planning System Projects Implementation in Kenyan State Agencies: A Case of Tanathi Waterworks Development Agency
Abstract
Enterprise Resource Planning (ERP) Systems are managerial tools that improve organizational performance. ERP automates key functions such as Finance, Accounting, Human resource and procurement. Implementation of the Enterprise Resource Planning is normally done in facets depending on the organization's size and structure. ERP projects are capital intensive and different methodologies are adopted in implementing ERP systems. The implementation of the ERP systems comes with various challenge sand the ability of an organization to overcome the challenges determines the success of the project. This study thus, aimed to investigate the determinants of enterprise resource planning system projects implementation in Kenyan State Agencies in a case of Tanathi water works development agency. The study was guided by the following objectives: To establish how finance availability, capacity development, management commitment and Existing ICT Technology determine Enterprise Resource Planning System Implementation. The study used a descriptive research design with a target population of 58 respondents that was drawn from Tanathi top managers, middle and other Key departments. The study sampled 48 respondents through the purposive method. Data was collected through the use of questionnaires. Data were analyzed using Statistical Package for Social Sciences. All the questionnaires received were referenced and items in the questionnaire were coded to facilitate data entry. After data cleaning which entailed checking for errors in the entry, descriptive statistics such as frequencies, percentages, mean score and standard deviation were estimated for all the quantitative variables. Inferential data analysis was done using multiple regression analysis. The data was presented in form of tables. The study found that ERP was an added advantage and value for money and that ERP does not improve financial control and better accuracy. The research also found that training development determines enterprise resource planning system projects implementation in the Tanathi Water Works Development Agency. The research found that management shows commitment to programs on the implementation of ERP and the managerial staff was committed to ERP system continuous improvement. The research further found that LAN/WAN determines enterprise resource planning system projects implementation in the Tanathi Water Works Development Agency. The study concluded that capacity development was the greatest determinant of enterprise resource planning system projects implementation in Tanathi Water Works Development Agency, followed by financial availability, then existing ICT Technology while management commitment was the last determinant. The study recommended that timelines should be realistic. The scheduled time for implementation and cost is inevitable to ensure that the desired results are obtained as agreed in the contract. The Tanathi Water Works Development Agency should carefully assess and select ERP software.
Keywords: Financial, Capacity development, management commitment, Existing ICT technology and Enterprise Resource Planning System Projects Implementation
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